Lab # 01: Learning the concepts of Feasibility Study SSUET/QR/114

Lab 09

Learning the concepts of Feasibility Study

THEORY
The development of software begins with requirement gathering and their analysis. The
Software Requirements are the descriptions of the system services and constraints that are
Generated during the requirements engineering process. Before the software requirements are
gathered and analyzed, it is necessary to do some research to study the impact of the software,
which is to be developed, over the client‘s business. This research is known as Feasibility study.

Software Requirements Engineering Process

It is the process of establishing the services that the customer requires from a system and the
constraints under which it operates and is developed.

The processes used for RE vary widely depending on the application domain, the people
involved and the organization developing the requirements. However, there are a number of
generic activities common to all processes
• Feasibility Studies
• Requirements elicitation and analysis
• Requirements validation
• Requirements management

The Feasibility Study

The Feasibility Study is a combination of a market study and an economic analysis that provides
an investor with knowledge of both the environment where a project exists and the expected
return on investment to be derived from it.

Feasibility Study may also be defined as:

• A preliminary study undertaken before the real work of a project starts to ascertain the
likelihood of the projects success.
• A small-scale investigation of a problem to ascertain whether a proposed research

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approach is likely to provide useful data.

• An analysis of the practicability of a proposal.
• A study that usually recommends selection of a cost-effective alternative.
• A study that decides whether or not the proposed system is worthwhile.

Feasibility Study is a study undertaken:

• To assess in broad terms of technology, cost and time the feasibility of meeting a Staff
Target.
• To identify alternative solutions, their relative advantages and disadvantages, and key
problem areas for further study.
• To provide detailed costed proposals for project definition studies and information in
the detail necessary to draft a Staff Requirement.
• To check:
• If the system contributes to organisational objectives
• If the system can be engineered using current technology and within budget
• If the system can be integrated with other systems that are used

Feasibility Study Report

• The study addresses issues including the project's benefits, costs, effectiveness,
alternatives considered, analysis of alternative selection, environmental effects, public
opinions, and other factors.
• A written report includes the study findings, recommendations, and (when the goal is
feasible) a campaign plan, timetable, and budget.

Feasibility Study Implementation

Feasibility Study is carried out through information assessment (i.e. what is required),
Information collection and report writing. Certain areas may be targeted by asking the following
questions:
• What if the system wasn‘t implemented?
• What are current process problems?
• How will the proposed system help?
• What will be the integration problems?
• Is new technology needed? What skills?
• What facilities must be supported by the proposed system?

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Case Studies of Feasibility Studies

Consider the following Real-world case studies of Feasibility Studies carried out by various
organizations:

Case 1: BankSoft Feasibility Study - World Bank ATM Pilot Project

This document outlines a feasibility study done by BankSoft for World Bank. World Bank has
proposed a pilot project where they would like to implement several ATM machines to measure
the popularity of such machines. In the future, they would use the data that they collect on
these
machines to implement more machines worldwide.
World Bank is renowned for its attention to security. Herein, three alternatives have been
suggested for designing these test machines. Each alternative is quite secure, but has its own
advantages and disadvantages over the other. The alternatives are as follows:
• An embedded system. This would require a lot of time and custom hardware, but would
be extremely fast and BankSoft would provide an excellent warranty for the software.
• Custom software on Microsoft Windows. This system would require minimal time and
cost, but would not require any special hardware. Interoperability with the bank's
central computer would be maximized, and warranty coverage would also be at peak.
• Custom software on a free Unix OS. This system would also not require special
hardware, but making the software interoperable with the bank's central computer
would take additional time and effort. Such a system would be extremely stable and
inexpensive.
The recommendation has been made that the second alternative be designed, with custom
software designed on top of the Microsoft Windows platform. It is strongly believed that its
advantages outweigh its disadvantages more than any other alternative.

Case 2: The Mentoring Database System Feasibility Study

In this document, an overview of the Otonabee College Mentoring Program has been given and
then a description of the requirements for a software system to support the various
administrative tasks associated with that program. Then an analysis of the system currently in
use is given to emphasize the need for a redesign and the development of a new software
system, the Mentoring Database System (MDBS). Finally, a description of the proposed
solution, an analysis of the project‘s feasibility, and a conclusion is presented.

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Lab # 01: Learning the concepts of Feasibility Study SSUET/QR/114

EXERCISES
1. Mention the sequence of issues that are to be addressed in a Feasibility Study Report.
Ans):
Preliminary analysis: Before moving forward with the time-intensive process of a feasibility
study, many organizations will conduct a preliminary analysis, which is like a pre-screening of
the project. The preliminary analysis aims to uncover insurmountable obstacles that would
render a feasibility study useless. If no major roadblocks are uncovered during this pre-screen, a
more intensive feasibility study will be conducted.
Define the scope: It’s important to outline the scope of the project so that you can determine
the scope of the feasibility study. The project’s scope will include the number and composition
of both internal stakeholders and external clients or customers. Don’t forget to examine the
potential impact of the project on all areas of the organization.
Market research: No project is undertaken in a vacuum. Those conducting the feasibility study
will delve into the existing competitive landscape and determine whether there is a viable place
for the project within that market.
Financial assessment: The feasibility study will examine the economic costs related to the
project, including equipment or other resources, man-hours, the proposed benefits of the
project, the break-even schedule, the financial risks, and — most importantly — the potential
financial impact of the project’s failure.
Roadblocks and alternative solutions: Should any potential problems surface during the study,
it will look at solutions for the project to go ahead successfully.
Reassessment of results: A holistic look at the feasibility study with fresh eyes, particularly if
any significant amount of time has passed since it was first undertaken, is essential.
Final decision: The final aspect of a feasibility study is the recommended course of action—in
other words, whether the project should proceed or not.

3. Consider any Real-world Feasibility Study Report. Comment on the quality of the report by
highlighting its strengths and weaknesses.
Ans):
Considering the strength and weaknesses of afforestation projects that have been.
implementing in Quang Nam province, the following lessons can be withdrawn:
• Project objectives should clearly be identified since the project design and should base on
what are available in the locality as natural and socio-economic conditions and market for
products
• Information should sufficiently be supplied to local people, organizations of concerned on the
objectives, method of implementation, activities of the project since the project preparation
stage.
• Farmers should volunteer for the project implementation with their commitment, without

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any compulsion by any reasons.

• Land area for the project should well be surveyed and assessed objectively. The land should
have owner with land use certificate and no land use conflicts.
• Good seedlings with a reliable background and technical measures for afforestation must be
well followed by the growers.
• There should be a working group who are of forestry understanding and capability of
management at commune level to support technical guidance and exchange ideas with staff
involving in afforestation. Groups and associations on forest production in villages to improve
effectiveness in project management, capacity for HHs involving in afforestation via exchanging
information among members.
• Clear mechanism for getting credit loan should be available with close supervision/monitoring
by the lenders. There should be a commune working group to support loan use in an effective
and correct way.
• Benefits and responsibilities of HHs and members of the PIU, commune working groups
should well be identified.
• Regular and periodic checking made by PIU and commune working group toward the HHs
involving project implementation

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